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Leadership Theories

Transformational leadership is a more humane leadership theory, as

compared to the militaristic transactional theory

It believes in inspiring employees to do great work through example

and the force of a leader's personality

People rise higher through positive motivation, than negative


It is a leadership theory which appeals to the higher need of an

individual in the Maslow's hierarchy of needs, which is self-
O As an idea, transformational leadership was first
mentioned in 1973,in the sociological study conducted by
the author “Downton, J.V”.
O After that ,“James McGregor” used the term
transformational leadership in his book “Leadership”
O In 1985, “Banard M. Bass” presented a formal
transformational leadership theory which ,in addition to
other things also includes the models and factors of
O One year later (1986)“Noel M. Tichy” and “Marry Anne
Devanna” published a book under the title “The
Transformational Leadership”.
What is
is a leadership style where one or more
persons engage with others in such a
way that leaders and followers raise
one another to higher levels of
motivation and morality
stimulate and inspire their followers to achieve
extraordinary outcomes and, in the process,
develop their followers’ own leadership capacity.
These leaders help followers to grow and develop
by responding to followers’ individual needs by
empowering them and aligning the objectives and
goals of the individual followers, the leader, the
group, and the larger organization
(Bass & Riggio, 2006).

To inspire followers to
share the leaders’ values
and connect with the
leader’s vision
 The prime assumption is, that people will
willingly follow a leader who inspires

 The vision and passion of one man can

transform his followers and together they
can achieve great things

 Energy and enthusiasm are the tonics

that get things done
Transformational Leadership
- A Process -
 Process that changes and transforms

 Process that is concerned with the Emotions,

Values, Standards, Ethics, and Long Term

 A transformational leader motivates followers

to accomplish more than what is usually

 The sum becomes more powerful than its

4 I's of Transformational Leadership
Idealized Influence
Leader serves as an ideal role model for followers and is admired for

Inspirational Motivation
Transformational leaders have the ability to inspire and motivate

Individualized Consideration
Transformational leaders demonstrate genuine concern for the needs
and feelings of followers which brings out the best efforts from each

Intellectual Stimulation
Transformational leaders challenges followers to be innovative and

O Idealized influence

O Inspirational motivation

O Intellectual stimulation

O Individualized consideration
Components of Transformational Leadership
Transitional Leadership Transactional Leadership
Inception of creative ideas Planning and following process
Clear understanding of current scenario oriented methodology
Pre-defined objectives and a clear road Building team and support
map to achieve them Identifying expertise in various fields
No self-serving motives of work
Focus approach on identified challenges

Transparent Leadership
Transcendent Leadership
Congruence between leadership
and goal Identifying future leader and team
Integrity in finances and in Relinquishing control
information Inspiring and motivating potential to
Idealized influence
O Ideal role model
O High moral and ethical standards
O Show respect, attention, and
consideration towards followers
O Consider differences between followers
levels of abilities, ways of learning, and
approaches to work
O Encourages the followers
O Understanding personal feelings and
Inspirational motivation

O Ability to inspire and motivate

O Provides followers with challenges
and meaning for engaging in shared
goals and undertakings
O Show followers how their work
applies to real world
O Behave in an enthusiastic,
passionate and energetic way
Individualized consideration

O Coaching, mentoring, and growth

O Self-actualization, self-fulfillment, and
O Attend to each follower's needs
O Listen to the follower's concerns and
Intellectual stimulation
O Re-examine their assumptions about
their work and re-think how it can be
O Innovative and creative
O Helps followers see the big picture and
how they connect to the leader,
organization, each other, and the goal.
O Challenge followers to come up with
new ideas
O Ask questions that make the followers
Transformational Leadership
Steps for Transformational Leadership
• Starts with creating a vision
Developin • Vision that is exciting and attract potential followers
g Vision

• Constantly sell the vision and build a strong network of high

Selling the potential

• Transformation leaders have a clear vision

• Have a fair idea about the direction to move and want followers to move in
the same direction
Road Map • Ready to accept failures

• Transformation leaders remain in the fore-front during the action

• Always visible and stand up to be counted
Leading • Bolster and infect the followers with commitment and enthusiasm
the charge
Competencies of a Transformational Leader

Continuous Personal Managing Information &

Development Knowledge
• Wide Range of • Inquisitive Mind & Critical
Leadership Styles Thinking To Apply Research
• Personal Values, Findings
Vision, & Goals • Measures Performance
• Risk-taking & Courage • Breakthrough
• Resilient & Resolute Technologies
& Networking

Mental Health Future Trans. Management

• Recovery-oriented • Org. & System Shifts &
• Science ↔ Service Transformation Learning
• Evidence-based Practices Leadership • Congregate Vision &
• Elimination of Disparities Competency Innovation
• Interagency Perspectives • Strategic Alliances
• Consumer & Family-Relevant • Mgmt. of Collaborative
Outcomes Relationships

Process Toolkit Business Acumen

• Negotiation Skills • Financing Strategies
• Dispute & Conflict • Organizational Dynamics
Resolution • Human Resource Development
• Group Facilitation • Internal/External Radar
• Concept Mapping, • Marketing & Branding
Future Casting,
Lateral Thinking
James Macn Gregor Burns

“Leaders and followers make each

other to advance to a higher level of
moral and motivation."

Through the strength of their vision and personality,

transformational leaders are able to inspire followers
to change expectations, perceptions, and
motivations to work towards common goals.
Burns was influenced by
Abraham Maslow’s Theory of Human Needs
He identified three ways in which leaders
transform followers:

• Increasing their awareness of task importance

and value.
• Getting them to focus first on team or
organizational goals, rather than their own
• Activating their higher-order needs.
How Does Transformational
Leadership Work?
O Transformational leaders set out to empower
followers and nurture them to change.

O They become strong role models for their followers.

O They create a vision.

O They act as change agents who initiate and

implement new directions.

O They act as social architects.

Application of
Transformational Leadership
 Provides ideas as to what a leader
should be in a transforming
 Vision statements create discussion
 Can be used in recruitment,
selection and promotion, and
training and development
Effect of Transformation Leadership
on Organizational Structure


Supportive Higher
Remarks Performanc

Groups under
al Leadership

Extra Effort

Effect of Transformation Leadership on
Organizational Structure
 Transformational leadership and organizational culture hold
the key to understanding organizational effectiveness

 Decisions taken by a manager are very important as they

affect a large number of people

 Thus the leadership skills of the manager have to be very


 An organic, non-formalized organization with a larger span

of control are conducive for transformational leadership to
Self Sacrifice and
Transformational Leadership


Reciprocity Public Good



Extra Effort
Self Sacrifice and
Transformational Leadership
 Display of self sacrifice behaviors by leaders
enhances transformational leadership

 Transformational leaders have the ability to transform

self-interests of followers into collective interests

 They do so by enhancing salience of collective

identity in the self-concept of followers

 Followers of transformational leaders work towards

advancing overall mission of the group rather than
their own personal interests
Self Sacrifice and
Transformational Leadership
 Martin Luther King, Mahatma Gandhi, Mother Teresa
demonstrated a form of transformational leadership
that was based on values

 Without morally uplifting the followers, leadership

cannot be transforming

 They motivate followers to go beyond their self-

interests for the good of the group, organization, or

 Such actions mutually benefit both the organization/

society and the employees
Transformational Leadership in Schools
Objective of Management • To transform the value system of its students
Education • To enhance perception of oneness with others

• Self-oriented values like a comfortable life and pleasure becoming

Value system of MBA more important
students • Others-oriented values like being helpful and polite becoming less

• The corporate world interested in managers whose relative ordering

of values is just the reverse
Cause for concern • An MBA program that reduces the relative importance given to
values like being helpful and polite might find it difficult to market its
graduates to business organizations

The findings of this study provide some preliminary evidence on the

changes in value systems that are caused by management
education. Self-oriented values become more important and
others-oriented values become less important
 Widely researched intuitive appeal
 Focuses on the follower too
 Emphasis on followers’ needs, values, and
 Enthusiastic work atmosphere
 Innovations
 Higher output and efficiency
 Develops future leaders
 People will work for leader even if monetary
compensation is less
X Lacks conceptual clarity
X Validity of MLQ is questionable
X Fixed trait or malleable state
X Potentially elitist or antidemocratic
X Totally depends on ability of leader
X Leaders might lack the required
O Widely researched from many different
O It has intuitive appeal as a concept.
O It treats leadership as a process between leaders
and followers.
O It offers an expanded picture of leadership. Most
other models are transactional.
O It has a strong emphasis on followers’ needs,
values, and morals.
O It has substantial evidence of being effective.
O Lacks conceptual clarity.
O The measurement scale does not always
distinguish clearly among factors.
O It is a trait theory rather than a behavioral
O Tends to be elitist and antidemocratic.
O Has a heroic leadership bias.
O May not work on all levels of the organization.
O Has the potential to be abused.

Lead and inspire people.

Don't try to manage and
manipulate people.
Inventories can be managed
but people must be lead.
--- Ross Perot